Regulatory Alerts2014-01-01
Banking and Financial Institutions (Management of Risk Assets) Regulations 2014
The Bank of Tanzania issued these 2014 regulations to mandate all licensed banks and financial institutions to establish, maintain, and periodically review robust credit risk management policies aligned with international standards. The rules require institutions to conduct quarterly reviews of outstanding loans and off-balance sheet items, applying strict quantitative and qualitative criteria to classify assets into current, especially mentioned, substandard, doubtful, or loss categories. Furthermore, the regulations prescribe mandatory charge-offs for prolonged loss-classified assets, define clear upgrade and downgrade conditions for non-performing loans, and enforce timely reporting and capital provision requirements to safeguard sector stability.